The USD-KRW 1-month non-deliverable forward (NDF) closed at 1,459.10 won (MID) on the 24th (local time), down 7.20 won from the Seoul foreign exchange market spot close of 1,466.60 won on the previous session, according to overseas brokers on the 27th. The dollar gained modestly against the euro after US President Donald Trump threatened to impose 'substantial tariffs in the near future' on the European Union in retaliation for fines levied on American big tech companies. Geopolitical uncertainty surrounding Iran-US negotiations and fluctuating oil prices added volatility to currency and commodity markets.
Trump Threatens EU with Substantial Tariffs Over Big Tech Fines
US President Donald Trump stated he would impose 'substantial tariffs in the near future' on the European Union in response to the EU fining American big tech firms. The threat contributed to euro weakness and supported the dollar's modest advance in currency markets on the 24th.
Iran-US Tensions and Pakistan Mediation Efforts Pressure Oil Prices
International oil prices fell intraday after reports emerged that Pakistan, acting as mediator between the United States and Iran with backing from China, was pursuing resumed talks. However, President Trump indicated he was in serious dialogue with Iran but would resort to a large-scale attack if no agreement was reached, reigniting market caution. September-delivery West Texas Intermediate (WTI) crude closed at $89 per barrel, down approximately 3.1% from the previous session. US equity markets showed mixed performance as semiconductor stocks faced concentrated selling pressure.
US Services PMI Climbs to 53.6 in July Preliminary Reading
The US services sector purchasing managers' index (PMI) preliminary reading for July reached 53.6, according to S&P Global. The figure rose 2.4 points from June's 51.2, marking the highest level in eight months.
USD-KRW Spot Hits Lowest Level Since May 7
The USD-KRW exchange rate closed at 1,458.50 won at 6 AM on the 25th, the lowest level since the May 7 low, driven by selling sentiment and supply-demand factors. The bid quote stood at 1,458.90 won and the ask at 1,459.30 won on the 24th. The dollar index closed at 101.478. USD-JPY traded at 163.847 yen, EUR-USD at 1.13669 dollars, and offshore USD-CNY at 6.7702 yuan.
FAQ
What caused the USD-KRW NDF to fall on the 24th?
The USD-KRW 1-month NDF closed at 1,459.10 won on the 24th (local time), down 7.20 won from the previous Seoul spot close of 1,466.60 won, as the dollar strengthened modestly against the euro following Trump's EU tariff threat.
Why did oil prices decline despite geopolitical tensions?
WTI crude fell approximately 3.1% to $89 per barrel after reports that Pakistan was mediating renewed Iran-US talks with China's support, though Trump's warning of a large-scale attack if negotiations fail kept markets cautious.
How high did the US services PMI reach in July?
The July services PMI preliminary reading climbed to 53.6, up 2.4 points from June's 51.2 and the highest in eight months, according to S&P Global.
